The Law Offices of Lloyd Lee, PC is experienced in dealing with many real estate legal issues including Real Estate Investments, Real Estate Syndication, Real Estate Development, Real Estate Financing Contracts, Real Estate Purchase Contracts, Joint-Venture Agreements, Lease Agreements, Limited Liability Companies, Corporations, Real Estate Brokerages, Usury Laws, Promissory Notes, Commercial Real Estate Finance, Private Equity Lenders, Hard Money Loans, Property Management Contracts. Lloyd Lee, Esq is also a licensed California Real Estate Broker.
Real Estate Syndication
Real estate syndication means two or more persons pooling resources together to improve their investment opportunities. Syndicates can hold property in a number of forms such as a corporation, partnership, limited liability company or tenants-in-common.
Syndications are often formed as limited-liability companies (LLC’s) because of the flexible form and structure and pass-through tax advantages. However, California LLC’s are subject to an annual minimum franchise tax as well as a percentage of annual gross receipts capped at $11,790. Still the cost of LLC ownership is valuable because it limits liability to the assets of the company, and protects the investors’ personal assets.
Syndicators or promoters look for investment opportunities and then use personal resources to secure the rights to purchase the property by paying deposit money. However this can be risky for syndicators because their personal money is at risk if the deal doesn’t materialize. Sometimes syndicators can negotiate for the return of the deposit if he or she is unable to arrange financing in time. Once the property is secured, the syndicator has a window of time to form the syndicate entity, raise capital from investors, purchase the property, and manage and operate the syndicate for a management fee.
Syndicators look for qualified investors by circulating a private offering memorandum which discloses material information necessary for investors to make informed decisions. Moreover, private syndicates are strongly encouraged to comply with SEC rules to reduce the risk of subsequent lawsuits for misrepresentation when an investment has gone bad.
Real Estate Financing Contracts | Purchase Contracts
Before entering a transaction, make sure you understand the legal issues surrounding your business deal. Often times, a legal misstep can invalidate the entire agreement between the parties and leave you without any legal rights. Speak with a real estate lawyer today. Call our offices for a consultation.
Joint ventures or JV’s are normally two or more persons jointly to carry out a single business enterprise for profit for a limited period of time. A formal writing is not required but is strongly recommended to protect your business interests.
Joint ventures are commonly formed for the purpose of conducting a single transaction or a series of transactions. JV’s are also flexible in that the income and losses can be distributed in any manner provided by the partnership or JV agreement. Each JV partner has an equal right to management and control of the JV business unless otherwise agreed.
However, the main disadvantage of the JV is that each partner as an agent of the partnership is jointly and severally liable for the debts and obligations of the venture. Each JV partner faces unlimited liability for contracts made or torts committed by another JV partner.
Make sure to consult with a knowledgeable real estate attorney before engaging in a joint-venture with other partners.
Many business owners sign leases without reading or understanding the terms of the agreement. New business owners in particular try to avoid legal fees and attempt to negotiate the leases themselves, only to find later that when disputes arise, they will have to bear much higher costs because they have agreed to unfavorable terms. There are many ways to improve leases for landlords or tenants. Consult with an experienced real estate attorney today to protect yourself.
Commercial Real Estate Finance | Private Equity | Hard Money Loan Lenders
Often times, commercial or residential real estate investors are unable to obtain conventional loan financing from banks. Others simply cannot afford to wait. Given today’s strict lending environment, many businesspeople are choosing to secure private money.
There are several advantages to seeking private equity. Borrowers enjoy a much faster approval process, sometimes as little as 1-5 days. Others enjoy the privacy of not having to disclose their business dealings.
Hire a Real Estate Lawyer
It is important that you consult with a commercial real estate attorney when seeking commercial financing. The Law Offices of Lloyd Lee, PC is experienced in dealing with commercial financing. Moreover, we have strong relationships with private capital sources. Call today to speak with a commercial real estate attorney.